Four paradigms of labor-management relations are found in American small schools: paternalism, collective bargaining, collegial problem solving, and community problem solving. Examination of the conditions under which each is likely to exist and their unique characteristics, reveals the circumstance which will enhance the effectiveness of each. Paternalism, most prevalent in the past, is outdated and only possible in a few communities today. The adversary collective bargaining, developed by large school systems, works with limited success in the small community with its unique communications patterns among community, staff, board, and management, and its flat organizational structure. The collegial problem solving model, which provides for multiple input from staff into the decision-making process, is relatively successful as long as the community does not focus great attention upon the schools. With recent changes in participation patterns, it will not be successful in many communities. The community problem solving model is best suited for small school districts. It provides for channels of communication which meets the unique needs of the smaller community, while at the same time providing for the most effective decisions. It does, however, demand greater time commitment from the board, staff, community, and management. (AH)